India’s Paytm Payments Bank, which facilitates transactions on mobile trading platform Paytm, expects the central bank to allow it to start accepting new customers again in the next few months, a top executive told Reuters.
In March, the Reserve Bank of India ordered a full audit of the company’s IT systems, without specifying it, and banned it from taking on new clients, citing “material” regulatory concerns.
The bank is working with RBI to complete the IT audit and address the regulator’s concerns.
“The process is ongoing and we think it should take three to five months to where we are now,” Madhur Deora, group chief financial officer, Paytm, told Reuters on Sunday.
The central bank did not immediately respond to an email seeking comment.
Paytm denied a Bloomberg news report in March that RBI found that its servers share information with China-based companies that have an indirect stake in the company.
Paytm is backed by Chinese Alibaba Group Holding and its subsidiary Ant Group.
One 97 Communications Ltd, the parent company of fintech firm Paytm, on Friday reported a larger fourth-quarter loss on higher payments processing, marketing and staff costs.
Deora said the company is on track to reach profitability by September 2023.
“We are seeing good growth in high margin businesses and as a result we are seeing improvements in contribution margin.”
“Our indirect expenses will not grow as fast as last year as we do not expect any significant investments in new business or staff costs this year as we already made them last year,” he added.
Paytm made its IPO debut in November last year in one of the country’s largest IPOs, but shares are down 70 percent since then.
© Thomson Reuters 2022
https://gadgets360.com/apps/news/paytm-payments-bank-rbi-curbs-lifted-3-5-months-3000127 According to Paytm Payments Bank, the RBI curbs will be lifted in 3 to 5 months